However, Mr Logan says the fresh milk market in China could be a good alternative for Australian dairy farmers and would allow the industry to grow by 100 million litres a year.

"At the moment, if we ship fresh milk up there they want to hold it for 15 days to be sure that it's safe, at which point of course, the milk isn't much good.

"So we've applied to Austrade to see if we can develop a relationship with the Chinese inspection and quarantine group, so that we can get the milk inspected here, certified as safe and delivered up there with some sort of guarantee of quality."